January 13, 2025 | 714-336-0394 | Scot@CampbellRealtors.com | Broker of Record – Coldwell Banker-Campbell Realtors
Handling Unsolicited Offers to Buy Your Home in Huntington Beach
If you live in Huntington Beach—a coastal gem known for its beautiful beaches, surf culture, Mediterranean climate, recreational opportunities, and desirable neighborhoods—you will probably receive one or more unsolicited offers to buy your home each year.
Popular areas like Downtown Huntington, Seacliff, Edwards Hill, Huntington Harbour, Sunset Beach, Huntington Court & Place, Meredith Gardens, Summerlane, Brightwater, Bolsa Landmark, and Huntington Landmark attract attention from individual buyers and investors looking to capitalize on the area’s strong property values and redevelopment potential.
While receiving an unsolicited offer can feel unexpected, knowing how to handle it can make all the difference in achieving the best outcome for your home and personal goals.
Why Unsolicited Offers Happen in Huntington Beach
Huntington Beach’s real estate market is highly sought-after, making it an appealing target for both frustrated buyers and savvy investors.
- Low Inventory: In Huntington Beach there are very few homes on the market now as compared to years past. In fact, there were only about 50% as many homes available on average in 2024 as compared to 2014. Why? Highly appreciated homes require the payment of capital gains taxes upon sale, homeowners like their very low interest rate Covid-19 era loan, and one must be age 55+ to transfer property taxes under Proposition 19 rules. Homeowners have a financial incentive not to sell their home in many if not most instances, and this has resulted in very low inventory of homes for sale in Huntington Beach.
- Frustrated Buyers: In competitive markets like Huntington Beach, traditional listings often receive multiple offers, leaving several buyers empty-handed. When someone sees a property they love, they may instruct their real estate agent to make an unsolicited offer on similar homes in the neighborhood that are not listed.
- Investors: Investors may target your home because it is a redevelopment or flip opportunity. For example, as we often see in Downtown Huntington Beach, a developer might tear down a little beach cottage on a double lot and build two 3-story homes in its place. Mid-Century single story homes in Huntington Harbour and Seacliff are a target. Investors purchase these homes, update them with luxury quality finishes, then sell to baby boomers looking to downsize into a single story home near the beach. A house that is all original and needs work appeals to investors as a Flip Opportunity. While a house may not draw high priced offers as a fixer, the investor knows that after a major remodel there will be many interested retail buyers willing to pay top dollar for a home near the beach.
Knowing the motives behind these offers can help you determine the best course of action. While a young family may offer fair market value for your home out of a genuine desire to live there, investors are often looking to secure your property for as little as possible to maximize their profits.
For investors it is all business: If you lose, they win… Investors are not in the business of losing, so do not expect to win if you sell your property to them.
How to Handle Unsolicited Offers in Huntington Beach
If you receive an unsolicited offer, here are your options:
- Do Nothing and Hold Your Ground
If you have no interest in selling, you are under no obligation to respond—it’s not rude to ignore the offer. However, persistent investors, particularly those focused on acquiring adjacent properties, may continue to make offers or try to pressure you into selling. If this happens, stand firm, and consider consulting an attorney if the tactics become aggressive. - Hire a Local Real Estate Agent to Negotiate for you
If you’re open to selling your home but want to ensure you get the best deal, hiring a real estate agent with local expertise is the smartest move. An experienced agent will:
- Research the investor or buyer to determine their motives and redevelopment plans.
- Accurately assess your home’s value—especially if your property has unique appeal or redevelopment potential that could push its value above standard market rates.
- Negotiate effectively to ensure you receive top dollar for your home and possibly negotiate a low (or no) cost rent back for you to make your move easier.
- Provide the legally and statutory required reports & forms to make sure you are in compliance with disclosure laws (which will keep you from being sued after the close of escrow).
- Open escrow, order the title report, and follow-up with the buyer during the inspection period and coordinate with the lender and escrow company to be certain the transaction closes on-time.
A highly knowledgeable agent understands what drives the values in all the neighborhoods of Huntington Beach and can give you an advantage during negotiations. Double lots in Downtown Huntington Beach, Single Story Mid-Century homes in Huntington Harbour, and fixers are just a few of the examples in our area that could make your property worth much more than another home in the city of similar square footage and lot size.
- Negotiate the Sale Yourself
If you prefer a do-it-yourself approach, it’s still essential to prepare thoroughly before engaging with an unsolicited offer. Here’s how to proceed:
- Understand the Buyer’s Motives: Research the buyer or investor. Google their company, look for development plans or press releases, and ask neighbors if they’ve received similar offers.
- Determine Your Home’s Value: Use real estate platforms like Zillow, Redfin, or MLS data to find recent sales of comparable homes in Huntington Beach. Consider unique factors like proximity to the beach, lot size, or redevelopment opportunities. Calculate Your Costs: Selling your home means incurring expenses, including moving costs, possible capital gains taxes, possible higher property taxes on the new home, and costly upgrades to a new property you purchase. Factor these into your determination of the sale price to ensure selling makes financial sense.
- Know Your Timeline: Cash buyers often expect a quick closing. Decide on a timeline that works for you and communicate it clearly. Inquire about a “free” one month rent back after close of escrow to make your move easier.
- Hire a Realtor to act as a facilitator: Do not agree to a price in writing with the buyer until you have spoken to a Huntington Beach Realtor. Many experienced real estate agents will act as a facilitator for you. They will provide you with sales comparables to make sure you are happy with the sale price you contemplated with the buyer. If all is good, the Realtor will take the terms that you and the buyer have negotiated, then draw up the industry standard purchase agreement and disclosure forms. They will order the title report, open escrow, and follow up with the lender to be sure the escrow closes on-time. Most importantly, the purchase agreement will be drawn up correctly so that the buyer loses their deposit if they do not perform at the last minute, and the disclosures will be done correctly so you do not get sued after close of escrow. The cost of hiring a Realtor to act as a facilitator can be as little as 1% to 2% of the purchase price.
You could hire an attorney instead of hiring a Realtor to act as a facilitator. But, beware, most attorneys do not have access to the most recent industry forms, they are less familiar with industry best practices, and they do not work on a contingency. You will be asked to pay their bill whether the escrow closes or not. In most cases Realtor will work for you more diligently completing many tasks the attorney will not do. Most importantly, the Realtor will not accept payment unless and until the escrow closes.
Final Thoughts on Unsolicited Offers in Huntington Beach
Receiving an unsolicited offer on your Huntington Beach home can feel flattering, opportunistic, or even intrusive. If you have no interest in selling, ignore the offer or consult an attorney to handle pushy investors.
If you’re open to selling, leverage the interest to negotiate the best deal possible—preferably with the help of a local real estate agent who understands the nuances of Huntington Beach’s competitive market.
By understanding the buyer’s motives, assessing your home’s true value, verifying the tax aspects of the sale, and being clear about your goals and timeline, you can turn an unsolicited offer into an opportunity that aligns with your financial and lifestyle needs.
If you are feeling uncomfortable negotiating with unsolicited offers on your own, the best choice may be to hire an experienced individual Huntington Beach real estate broker. A knowledgeable agent brings expertise in the local market, sharp negotiation skills, and access to a network of potential buyers which the unsolicited buyer will fear as competition. The agent will guide you through every stage of the disclosure and escrow process to insure an on-time closing.
Important tip: Do not assume listing with a big “team” or “group” will result in you working with the most knowledgeable and experienced agent. While the “teams” tout their success in closing many homes and being #1 (in the state, country, or universe), the fact is they have many realtors who give “credit” to just one “team leader”. When listing your home, you may speak to that team leader initially, but your file will most likely be passed to a junior associate for the remainder of the transaction. The junior associate will have nowhere near the education, experience, and skill to be found in a top individual Realtor working in your market. A top individual agent will have assistants that help with photography, marketing, and transaction paperwork, but the important transaction tasks will be handled by the Realtor you hired!